A Chinese ham producer has come up with an innovative way to pay its creditors. Some holders of its debt will now receive its pork products instead of interest payment.
Chuying Agro-Pastoral Group Co. said it has reached an initial agreement with creditors holding 271 million yuan ($39 million) of its debt with interest portion to be repaid with ham or pork gift packages.
The announcement came after the company failed to repay 500 million yuan local bonds due Nov. 5. amid a cash crunch resulting from a drop in demand for pork products thanks to the spread of African swine fever.
As of Sept. 30, the company had 1.3 billion yuan cash, compared with short-term debt of 8.4 billion yuan, according to Bloomberg-compiled data.